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February 05, 2007

ExpressJet Launches Own Airline

ExpressJet, which used to fly under the Continental Express banner, has launched its own airline (called ExpressJet, of course).  Pay no attention to the Independence Air debacle that happened when Atlantic Coast Airlines did the same thing.  Not important (they say).  What is important is that you can now fly nonstop from Omaha to San Diego.  Or, if you prefer, Tulsa to Sacramento.  Could be ugly.

February 5, 2007 | Permalink: ExpressJet Launches Own Airline


The folks running ExpressJet are adults (former CO management), so this is unlikely to be a repeat of the FLYI fiasco. That said, I don't like the fact that this was a "default" business plan: something to do with excess aircraft after CO decided to go with a lower bidder for some of its RJ feed. I also don't like the fact that they're using 50-seat RJs, which have notoriously high CASMs.

Would I invest in this company based on what I currently know? No. Do I think they could surprise us? We'll see. I don't think they would launch this service unless they thought there was a reasonable chance of making a profit. If they manage to pull it off, it will be a wonderful development for small cities, which are currently without nonstop service to non-hub airports.

: iahphx at Feb 7, 2007 2:04:36 PM

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